Americas Market Update 23 July

Bunker prices have shot up in most ports, and demand has been muted in Panama this week.

IMAGE: Container loading area in the port of Balboa. Getty Images

Changes on the day to 08.00 CDT (13.00 GMT) today:

• VLSFO prices up in Zona Comun ($50/mt), Houston ($45/mt), New York ($38/mt) and Los Angeles ($35/mt), and down in Balboa ($39/mt)
• LSMGO prices up in Balboa ($101/mt), New York ($64/mt), Los Angeles ($58/mt), Houston ($44/mt) and Zona Comun ($38/mt)
• HSFO prices up in Balboa ($40/mt), Houston ($30/mt), New York and Los Angeles ($27/mt)

Balboa's VLSFO price benchmark has been the only to decline against sharp gains for Brent over the past day.

The benchmark has fallen by $39/mt amid a lower-priced 500-1,500 mt VLSFO stem fixed at $600/mt in the port.

Meanwhile, Balboa's HSFO price has recorded the highest gain for the grade among the key ports. These price movements have narrowed the port's Hi5 spread to $18/mt today, from $97/mt on Wednesday.

In Panama, bunker demand has dipped this week, while availability continues to be decent in both Balboa and Cristobal.

Zona Comun has recorded the largest VLSFO price increase among key bunker locations over the past day. Availability remains good, with suppliers recommending lead times of 5-7 days.

Brent

The front-month ICE Brent contract has jumped $5.64/bbl on the day, to trade at $99.81/bbl at 08.00 CDT (13.00 GMT) today.

Upward pressure:

Brent crude is trading close to the $100/bbl threshold as the US-Iran conflict has effectively spread to the Red Sea.

Yemen’s Iran-backed Houthi militants have targeted two oil tankers – the Encelia and Layla – in the Bab al-Mandeb Strait for violating their maritime embargo on Saudi Arabian oil shipments.

Meanwhile, US President Donald Trump has made it clear that US military action in the region will be further ramped up, as the conflict shows no sign of de-escalation.

“Any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz… the United States will bomb and destroy ONE BRIDGE OR POWER PLANT,” Trump wrote on social media platform Truth Social.

Downward pressure:

Brent’s price came under some downward pressure after the US Energy Information Administration (EIA) reported an increase in US crude stocks.

US crude oil inventories gained by 2 million bbls to 411.7 million bbls in the week ending 17 July, according to data from the EIA. A build in US crude stocks can indicate lower demand for oil.

By Gautamee Hazarika and Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online